forex realisation event 4 happens when you cease to have an obligation, or a part of an obligation, to pay *foreign currency, and neither of subparagraphs 775-55(1)(b)(ii) and (iii) applies

for the purposes of section 775-55, the amount of the obligation, or the part of the obligation, at the tax recognition time (see subsection 775-55(7)) is to be translated to Australian currency at the exchange rate applicable at that time.

2

cost of a *depreciating asset

(a) if you incur an obligation in return for your starting to hold the asset, and the obligation is not satisfied before you begin to hold the asset (worked out under Division 40) - the cost of the asset is to be translated to Australian currency at the exchange rate applicable when you begin to hold the asset; or

(b) if you incur an obligation in return for your starting to hold the asset, and the obligation is satisfied before you begin to hold the asset (worked out under Division 40) - the cost of the asset is to be translated to Australian currency at the exchange rate applicable when the obligation is satisfied.

3

value of an item of *trading stock on hand at the end of an income year, where you have elected to use its *cost

the value is to be translated to Australian currency at the exchange rate applicable at the time when the item became on hand.

4

value of an item of *trading stock on hand at the end of an income year, where you have elected to use:

the value is to be translated to Australian currency at the exchange rate applicable at the end of the income year.

(a) its market selling value; or

(b) its replacement value

5

a transaction or event that:

(a) involves an amount of money or the *market value of other property; and

(b) is relevant for the purposes of Part 3-1 or 3-3;

to the extent to which the amount or value is relevant for the purposes of Part 3-1 or 3-3

the amount or value is to be translated, for the purposes of Part 3-1 or 3-3, to Australian currency at the exchange rate applicable at the time of the transaction or event.

6

an amount of *ordinary income

(a) if the amount is received at or before the time when it is *derived - the amount is to be translated to Australian currency at the exchange rate applicable at the time of receipt; or

(b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable when it is derived.

7

an amount of *statutory income (other than an amount included in assessable income under Division 102)

(a) if the amount is received at or before the time when the requirement first arose to include it in your assessable income - the amount is to be translated to Australian currency at the exchange rate applicable at the time of receipt; or

(b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable at the time when the requirement first arose to include it in your assessable income.

8

an amount that you deduct (other than under Division 40)

(a) if the amount is paid at or before the time when it became deductible - the amount is to be translated to Australian currency at the exchange rate applicable at the time of payment; or

(b) in any other case - the amount is to be translated to Australian currency at the exchange rate applicable at the time when it became deductible.

9

an amount that is relevant for the purposes of quantifying:

(a) the total of all of a company's *production expenditure on a *film; or

(b) the total of the company's *qualifying Australian production expenditure on a film; or

(c) the company's *total film expenditure on a film;
to the extent to which the amount is relevant for the purposes of issuing a certificate under section 376-20 or 376-65

the amount is to be translated to Australian currency at the exchange rate applicable at the time when principal photography commences or production of the animated image commences.

9A

an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company's *production expenditure on a *film; or
(b) the total of the company's *qualifying Australian production expenditure on a film;
to the extent to which the amount is relevant for the purposes of issuing a certificate under section 376-45

the amount is to be translated to Australian currency at the exchange rate applicable when *post, digital and visual effects production for the film commences.

9B

subject to item 9C, an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company's *production expenditure on a *film; or
(b) the total of the company's *qualifying Australian production expenditure on a film; or
(c) the company's *total film expenditure on a film;
to the extent to which the amount is relevant for the purposes of calculating an amount of a *tax offset under section 376-15, 376-40 or 376-60

the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period that qualifying Australian production expenditure is incurred on the film.

9C

an amount that is relevant for the purposes of quantifying:
(a) the total of all of a company's *production expenditure on a *film; or
(b) the total of the company's *qualifying Australian production expenditure on a film; or
(c) the company's *total film expenditure on a film;
to the extent to which the total of the company's qualifying Australian production expenditure on a film is less than $15 million and the amount is relevant for the purposes of calculating an amount of a *tax offset under section 376-60

the amount is to be translated to Australian currency at the exchange rate applicable at the time when expenditure is incurred on the film

10

an amount that Division 12 of Part 2.5 in Schedule 1 to the Taxation Administration Act 1953 requires to be withheld from a payment

the amount is to be translated to Australian currency at the exchange rate applicable at the time when the amount is required to be withheld under that Division.

11

an amount of a receipt or a payment, where none of the above items apply

the amount is to be translated to Australian currency at the exchange rate applicable at the time of the receipt or payment.

S 960-50(6) amended by No 147 of 2011, s 3 and Sch 9 item 30, by inserting table item 9C, applicable in respect of the producer offset to: (a) films for which production assistance (other than development assistance) has been approved by the film authority on or after 1 July 2011; or (b) in any other case, films for which production expenditure is first incurred in, or in relation to, pre-production of the film on or after 1 July 2011.

S 960-50(6) amended by No 147 of 2011, s 3 and Sch 9 item 29, by substituting "subject to item 9C, an amount that is relevant" for "an amount that is relevant" in table item 9B, column headed "In this case ...", applicable (a) in respect of the location offset to films commencing principal photography or production of the animated image on or after 10 May 2011; and (b) in respect of the PDV offset to post, digital and visual effects production that commences on or after 1 July 2011; and (c) in respect of the producer offset to films for which production assistance (other than development assistance) has been approved by the film authority on or after 1 July 2011; or (d) in any other case, in respect of the producer offset to films for which production expenditure is first incurred in, or in relation to, pre-production of the film on or after 1 July 2011.

9 ... an amount that is relevant for the purposes of quantifying: ... (a) the total of all of a company's *production expenditure on a *film; or ... (b) the total of the company's *qualifying Australian production expenditure on a film; ... to the extent to which the amount is relevant for the purposes of Division 376 ... the amount is to be translated to Australian currency at the average of the exchange rates applicable from time to time during the period that: ... (a) starts on the earliest day on which: ... (i) principal photography takes place; or ... (ii) the production of the animated image commences; and ... (b) ends when the film is *completed.

960-50(7)
Subsection (6) has effect subject to any modifications made by the regulations.

[
CCH Note:
Regulation 960-50.01 and Sch 2 of the Income Tax Assessment Regulations modify the table by inserting item 12, which provides an alternative to the translation rules in the other items of the table.]

S 960-50(7) amended by No 46 of 2011, s 3 and Sch 2 item 694, by omitting "For this purpose,
modifications includes additions, omissions and substitutions." after "the regulations.", effective 27 December 2011. For saving and transitional provisions see note under s 230-335(1).

Despite subsections (6) and (7), an amount that is relevant for the purposes of quantifying, for the purposes of section 960-565, the *annual global income of a *global parent entity as shown in *global financial statements for the entity is to be translated into Australian currency at the average exchange rate applicable for the period for which the statements are prepared.

960-50(8)
An entity must comply with the regulations (if any) in translating an amount into Australian currency.

Note:

For example, the regulations could require the use of a particular translation method and require consistency in the use of the translation method.

960-50(9)
Regulations made for the purposes of subsection (8) may make provision in relation to a matter by applying, adopting or incorporating (with or without modifications) matter contained in any of the *accounting standards:

S 960-50(10) amended by No 114 of 2010, s 3 and Sch 1 items 79 and 80, by substituting ";" for "." in para (c) and omitting para (d), applicable in relation to the 2010-11 year of income for a taxpayer and later years of income. Para (d) formerly read:

(d)
Part XI of the Income Tax Assessment Act 1936 (about foreign investment funds and life assurance).

S 960-50(10)(aa) inserted by No 67 of 2003, applicable to transactions, events and things in relation to which section 960-50 of the Income Tax Assessment Act 1997 applies, or would apply apart from subsection (10) of that section, because of paragraph 960-55(1)(a) of that Act.

Our commitment to you

We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations.

If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the information on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.